tv Markets Now FOX Business September 25, 2012 1:00pm-3:00pm EDT
is 1:00. melissa: this increase in year over year for the second straight month after two years without a rise. lori: is the worst behind us? melissa: we will look at what lies ahead for the all-important housing market. for what should the fed be doing to boost our recovery? lower unemployment? find out what then-president charles foster had to say. exclusive interview coming. he is a noted hawk i don't expect him to agree with all the move the fed has been making.
he thinks the risks and costs outweigh what he calls meager benefits. lori: does the government need to regulate or gps? [talking over each other] lori: this is something. melissa: guess who would pay for it? regulation nation series continues. regulate your gps. melissa: maybe it find that when gives you bad direction. lori: that is okay with me. melissa: time to head to the stock exchange with nicole petallides. stocks trading lower today. nicole: they tried the rally once again. at 13,600 rally. we tried it before and try it again and they lose it. the high of the day 13,620 on the dow jones industrials. interday charge shows we sold off after the noon hour as we started to hear from the filly
head. talking about monetary policy and pretty pessimistic and that played into this market as well as the fact that the imf may not give greece there nick heymann. lot of calls for a market that started pretty strong and another thing digesting its caterpillar having to repair products saying we won't make the profits we expected in years to come because economic growth is dwindling. with that through 2015 they are cutting their numbers. not saying they will be profitable regardless of a recession but they and -- on the dow down 2.5%. staples another name talking about the economy getting stores that are weighing on the company. 15 stores in the state. 45 stores in europe cutting their stores and focusing on line, cutting costs to have savings of $250 million. melissa: oil turning director losing ground in the last six
session. star -- fox business's phil flynn is in the trading pits of the cme and you have mahmoud ahmadinejad in town rattling his saber and stomping his feet. i would think there would be more of an impact on oil. phil: not only did it look like we would have more impact but we have missiles next to the strait of hormuz and iran talking about this new drone that can go 24 hours. i don't know if they made it or put a sticker on the one that crashed but at the end the day it seems we can't get away from concerns about europe. that reversed the market and oil prices are lower than today. the reason is despite a spirited defense of the eurobond buying program by mario draghi some hard data came out about the spanish budget deficit and it suggested the tax revenue down 4.6% year over year and at the same time showing the government
spending goes, 8% in the month of august. doesn't sound like austerity to me or the oil traders and after they came up oil reversed direction. more worried about europe. melissa: gold is an interesting story as well. price topping out at $1,800 was the estimate and morgan stanley thinks silver will outperform. i don't know about that. what do you think? phil: i think silver will. i am bullish on gold and i think $1,800 -- we will go a lot higher. the market is consolidating after a historic run. there will be a lot of quantitative easing coming out of the table and we know that will be bullish. in the middle east, at in the consensus of the middle east. one of the things they pointed out was india demand.
i am not worried about that. part of that was because they had a strike. they were upset with the jeweler's. that will rebound. with quantitative easing there will be a lot of hot money going into india. lori: i agree with what you said. phil flynn, price cooper's group. thank you as always. rising more than expected in july compared to a year ago. my next guest says the housing market is coming off of the bottom but it is a long and slow recovery. joining me is a professor at the university of pennsylvania. thank you for joining us. let's start with today's numbers because they look pretty positive for housing. at the same time we are 31% below the all-time high so even though it seems it is the bottom we have a long way to go. >> very long way to go but the recovery is on. the recovery has begun it is
going to continue and accelerate. accelerate at a slow pace. melissa: a lot of people said there has been a shift in housing. things we saw during the previous period or generation where folks like my parents would buy a house and over time it was their next they. you would plan on selling it when you retired and that was your retirement savings as opposed to your 401(k). will we see that acceleration again or are we never going to see that upswing? >> we are going to see it again but it is not around the corner. we have people on the sidelines attempting to rent rather than own from that that is part of pent-up demand. that will play out in the recovery. won't find out immediately because you still have folks waiting. 1% sounds great but it is not a signal that this market is so
expanding that they better get in now but with interest rates as low as they are this is a historic time for the housing market in terms of overall costs. on the other side of you don't have pristine credit that is a barrier as well. melissa: what is a realistic year over year increase to expect in the price of your home? there was a time you could see 10% or 20% you could hang on to a house 20 years and more than double your money. will we ever see that kind of dramatic thing again? >> that kind of dramatic gain is unsustainable and we are probably not going to see it for a while but housing has been a stable investment meaning housing prices have historically kept pace with inflation and that is about it. i expect housing prices going forward will more than keep pace with inflation but we are not there yet. we have to get through this recovery period with we don't
have construction industry so there is quite a rocky road to get back to normal. melissa: what do you think it happen from here to make things better? talk about low interest rates. i wonder if interest rates have to go back up to get people back in the market and renters you talk about have to feel like this historic window of cheapness is closing. >> there's a point. if that starts happening you will see a rush to home ownership now. there's another barrier as well which is credit constraints. banks very conservative. they are easing but it is difficult to get in with average credit score. right now that is a barrier. liz: that is how we got into the situation in the first place. thank you for coming on. appreciate it. lori: historic window of cheapness. i like that. have to call in that phrase. melissa: we will talk about
that. the industry is ready. in the meantime you heard nicole reference greece. their fiscal situation may be worsening. greece is bracing for another nationwide strike tomorrow. the finance ministry looked to get closer to a deal on austerity measures but unions are not having it. union's cause the strike to austerity measures for that aim to keep emergency funds coming to the country. money has kept greece going since 2010. the measures include pension and pay cuts and could up the retirement age by two years. airlines are changing flights to prepare for the strike. air-traffic controllers walked off the job. there could be a shortage of information out of the country. if journalists are bolting the. the finance ministry is reporting its 11.5 billion year, 15 billion usd budget shortfall but new reports show it could be
double that amount. the finance minister denies the report. we have seen for this over and over again. like watching groundhog day. the biggest union issue right now is the nfl. [talking over each other] melissa: the nfl is dragging us down. anyway, interesting stuff. lori: should gps manufacturers be force for new directions for truckers? one of our senators is questioned and liz macdonald guides us to regulation nation next. show us which way to drive. [talking over each other] lori:.com metals trading. melissa: talking about gold trading at $2. not much on the day. copper trading up 1%. we will be right back. want to try to crack it? yeah, that's the way to do it!
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lori: should the federal government regulate bad driving? now that senator chuck schumer has called for new federal rules for a satellite based gps systems to stop trucks from crashing into overpasses for is that the way to go? liz macdonald is here. liz: best story is senator chuck schumer says eight of ten truck crashes that occur on parkways into bridges or overpasses are due to the truckers using gps systems that consumers use or
using google maps. here is the senator talking about this problem he wants the federal government to fix. >> gps directed me on it and many truckers don't know gps -- its programmed to be the thing for a ford cars or 15 ft. high tractor-trailer. the owner should make sure the trucker doesn't do that. liz: here is what the senator wants the department of transportation to do. investigate this matter and issue recommended federal standards to address the problem. there is a spike in truck crashed fores and to bridges and two crashes in new york state, 855 the past decade and he wants the federal government to force gps to put warning systems into truckers gps system. the department of transportation for new york state truckers have those navigation devices and why not pick it them is the others
to being debated. lori: why does the government have to be involved? melissa: why would they force gps to work on this? they are everywhere. fake a problem that is real and come of with this insane government solution. liz: is essentially taxpayers have to pay to fix the bridges and over passes. why not force the trucking companies to pay for that? the issue is they shouldn't be on the parkway to begin with. [talking over each other] lori: there are signs everywhere. you know it is the parkway. liz: a flat bed or sewage pipe coming that me and cluttering up something out of road runner. [talking over each other] liz: senator schumer wants the federal government to force gps to fix a problem truckers should be fixing themselves. that is the issue. lori: more stuff to get fired up about. melissa: let's check the
markets. nicole petallides on a floor of the stock exchange watching home builders. nicole: taking the close of look at some of the others on a day when we get from case chiller numbers. less look at how they are fairing. it should be noted home builders have been an incredible group and that is an understatement for 2012. there is a look at how they are ferrying. they are both up 1/2% for coal brothers 0.3% but these are stellar performers. 87% for lennar, 75% for d r horton and this is on the heels of the case chiller number we got this morning which showed a rise and came in less than estimated that the truth is it shows continued growth in housing so the third consecutive month in 20 cities reported positive monthly changes. melissa: thanks so much.
you remember greg smith from goldman sachs. he rode the op-ed about the new york times. [talking over each other] melissa: he has a book on the way charlie gasparino tells us how the author and some big banks are preparing -- lori: let's check the dollar and how it is fairing. not a significant move. there is a tug-of-war going on regarding greece and spanish yields are higher and back with more in a moment. i'm so glad you called. thank you. we're not in london, are we? no. why? apparently my debit card is.
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>> 20 minutes past the hour. japanese coast guard vessels shot water cannons at each other in the latest dispute over tiny island in the cheese east china sea. vix skirmish started after a taiwanese fishing boats escorted by a patrol boat sailed into the waters around the tokyo control bonds. tokyo and japan--they're administered by tokyo. firefighters in southern california safire has killed in a luann -- elderly man refused
to evacuate. the fire burn 20 homes and officials said gusty winds could bring it back to life. 2 dozen more homes remain threatened. a rare bust. value net $3 million recovered almost a month after was stolen from a suburban philadelphia home. the fbi says a former house cleaner was arrested in maryland after it was found in her double bag. those a year news headlines in the fox business network. lori: her reaction is something. the world's most powerful bank, goldman sachs breaking for an expose on dealings. greg smith, a former employee who wrote that in the new york times op-ed, getting ready to release a parallel next month with all the juicy details. charlie: the lot of people don't know what he put together. he put this together in less than a year. people he pitched the book to, 5
he was pretty light on the specifics. didn't have a lot more than what was in the famous op-ed that cause the big stir where he said the culture of goldman sachs, rods from the head -- starve from the top of the firm. lloyd blankfein all the way down and so he went on a rampage. the book is coming out in late october. it is coming out a week after earnings. here is what goldman sachs is worried about. this is right as lloyd blankfein is on this sharma offense. image remaking campaign for himself and the firm. did the clinton global initiative. selective interviews here and there and increasing his public profile as he is doing it and here comes greg smith. what do they expect from greg smith? lots of media. internally inside goldman sachs they are telling me we get no
comments from these two but they are telling me he is doing anderson cooper and a big 60 minutes profile. [talking over each other] charlie: he will make it the first week. the question is how much more do he have? he has no fact checking. he has not come back and said the response to x why is the which is interesting. [talking over each other] charlie: describe a corporate culture and have specific anecdotes' you should really go back and check those with the people you are writing about which makes me tank if this is much more of greg smith's meandering about what is wrong with goldman, goldman is worried about a bad time for them. it is a good time for them. stock is starting to improve, will lead is out there stating his case. jamie dimon getting in trouble
and he is much more comfortable with questions right now. and he is much more comfortable. i have met the guy. [talking over each other] charlie: so much different from the media up for frail. it is starting to come out in these interviews and craig smith making a multi -- i get more details on the book, if there was a blockbuster thing, and -- [talking over each other] melissa: lawyers calling goldman sachs and as you know when going through this process a lawyer does read it and say where is this coming from? [talking over each other] charlie: detailed book about the financial crisis. i spent a month fact checking with a lawyer. every single line.
we are talking individuals. maybe this is greg smith sort of idea how to make the world better place. when he pitched a book, he got more than a million dollars the sum started dropping out. how to have a whole chapter, couple of chapters how to make wall street of better place. this is a mid level ploy, how to -- [talking over each other] charlie: they want to hear the dirt. [talking over each other] charlie: lloyd blankfein going to strip cuds. not saying that happened but that is what they wanted. [talking over each other] melissa: they would
[talking over each other] [talking over each other] melissa: they get pitched a ton of books. and all the options in the world and giving someone -- if there is nothing in it they would have read it and changed our minds. charlie: i have been through the drill with 60 minutes and that is publicity. this guy came out of a gate slamming. it went viral and that is -- what is he going to say? they have sharp elbows. [talking over each other] met lori: may be a high school as a. companies issuing a large amount of bond about $100 billion worth this month alone. what is hot in corporate debt? could it be this historic window of cheapness? that is more. find out after the break with
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coming in, revenue better but they did have to trim the full-year numbers and estimates. as a result that is down 3 1/2%. lori. lori: nicole, many thanks. borrowing costs are low in fact corporate bond sales nearly record highs in month of september exceeding $100 billion only the third time since 1995. what is behind this fund rays flurry and will it continue? we have the head of america's debt and capital markets at citigroup. richard, welcome to you. >> thank you. lori: tell me about the trend. what is your take? is this more about companies taking advantage of new money or is it a new idea? >> it is not a new idea. investors taking advantage of very low interest rate yields and looking at election coming up and fiscal cliff and saying why don't i move the funding up and take advantage of it now and i don't have not to take risk of what is going on in the election for the fiscal
cliff? lori: timing issue, the investors are snapping up corporate debt in fear of october perhaps? earnings season, fiscal cliff, to your point who knows what the next shoe to drop in europe. >> from investor point of view, they're flush with cash. i think a number are looking at equity market and feel it is a little overbought. saying where can i get some yield. the leverage side of the market, debt market you definitely can get some yield and in the investment grade side, weill you're not getting yield you can put a little safe product into your portfolio where in the past you bought sovereign credits and things like that. that was safe part of your portfolio. you don't want to buy sovereigns as safe now. maybe the investment grade corporates is new safe instrument. lori: that is interesting. more safe than the u.s. treasury? >> not as the u.s. treasury but safer than the sovereigns and many others. a lot of investors particular any asia and europe would buy european sovereigns, asian sovereigns
and mixed in with u.s. treasurys. now maybe i invest in u.s. treasurys and buy single a and high bbb corporates and those will be very safe. lori: barclays corporate index up 7.9% year-to-date versus s&p which is up 16%. tell me more about the trade in terms of doing your homework. >> right. lori: you're throwing out all of these investment grades and ratings and borrowings costs and all these metrics and for average investors it might be hard to sift through? >> for right now the solid tide is lifting all boats. there is not a lot of homework going on. people are buying liquid issues and trying to stay invested. as i said almost like a barbell. buy some. look at single a rated companies. that will be very, very safe. you will not get a lot of yield but it will be very safe and buy any kind of intermediate bond fund that focuses on high end quality and or buy individual bonds. if you want to look for some yield, go into the leverages markets but don't do so on individual basis buy a
well-known mutual fund from big houses, fidelities franklins of world because the liquidity dries up in those markets and you don't want to get caught as an individual investor. lori: good advice. richard, thank you. melissa: president obama taking center stage at the united nations saying we face a choice between the promise of the future or prisons of the past. more from his speech after the break. lori: we were talking about investment grade corporate ideas for you. let's check treasurys today. the ten year yield at 1.70%. and the third year, buying treasurys today is unchanged at 2.89%. back with more after this.
>> i'm cheryl casone with your fox business brief. british bankers association will move away from supervisory role of libor if necessary. bba says it will support the recommendations for managing director of financial services authority martin wheatley, who is expected to unveil a new regulatory libor structure sometime this week. tesla shares down sharply after slashing their 2012 revenue forecast. the electric carmaker cited slower than expected rollout of hits model s sedan. tesla adding some suppliers experienced delays in meeting its demand.
barnes & noble taking steps into the streaming business. they are launching nook video. they say the service will be available this fall. the company has licensed content from major studios, stars, walt disney studios and viacom. that is the latest from the fox business network, giving you the power to prosper.
lori: president obama addressing this year's gathering of the united nations general assembly condemning waves of anti-american protests in the middle east. fox's david lee miller joins us from outside the u.n. here in manhattan with more. david? >> the president spoke for about half an hour before the general assembly. much of that time was spent at length talking about combating extremism. the president specifically talked about u.s. ambassador chris stevens who was killed at the u.s. embassy in benghazi. he said his killers are
going to be brought to justice. on the subject of iran the president said the u.s. will try diplomacy to solve the conflict between iran's nuclear ambitions but he says time is not unlimited. he said the u.s. will do whatever it must to prevent iran from getting a nuclear weapon. on sir yashs the president very blunt. he said the u.s. will keep up the pressure but one way or another the assad regime must go. >> i know there are some who said why don't we just ban such a video? the answer is enshrined in our laws. our constitution protechs the right to practice free speech. here in the united states countless publications provoke offense. like me the majority of americans are christian and yet we do not ban blasphemy against our most sacred beliefs. >> the president is one of 36 world leaders speaking today. tomorrow, mahmoud ahmadinejad returns to the united nations it.
will be his last appearance as iran's president. back to you. lori: thanks for that. david lee miller from fox news. melissa: coming up tonight on "money" we'll have former new york city mayor rudy giuliani talking about everything we heard right there. as the president talks about reaction to the movie. it is his reaction to everything that happened appropriate? we have terrorists targeting our ambassadors in the middle east and we're talking about this movie. we'll get rudy giuliani's take on that the u.n. is in town. what does it cost us and is it worth it. lori: my mother-in-law is across the street. she is beside herselves on the traffic issues. melissa: what do we get about this whole thing? rudy giuliani coming up 5:00 p.m. eastern here on "money". lori: have a fantastic show, melissa. philadelphia fed president charles plosser is not happy with the fed's monetary policy. what should be done? find out his views after the break. peter barnes has the exclusive interview. melissa: first a look at some of today's winners and
lori: it is quarter till. as we do every 15 minutes let's check the markets. nicole petallides on the floor of the new york stock exchange with a major analyst call today. >> that's right. taking a close look here at walgreen's for the folks who live here in new york city. you're very familiar with duane reade pharmacy and that is under the umbrella of walgreens. look at the stock here. a gain of 1.5% here for walgreens. goldman sachs adding walgreens to the conviction buy list today. what is interesting back in january they cut walgreens. they reinstated the buy because they think they're regaining customers they originally lost with a
dispute with express script. back to you. lori: interesting story, nicole, thank you. melissa: the fed's latest round of stimulus drawing plenty of criticism even from within. more of the fed's regional bank presidents are voicing the opposition to the central bank policy. peter barnes has an exclusive interview with philadelphia fed president, charles plosser. peter, over to you. >> thank you, melissa. we're here with charles plosser of the philadelphia federal reserve bank who just finished a speech that really, i'll say it, ripped into quantitative easing and additional monetary accommodation. president plosser, thanks for joining fox business once again. >> thanks for being here. >> you are concerned about risks that all of this could backfire. how so? >> well, i mean i think every policy action has cost and benefits and i think one of the things that i've been trying to stress is that efforts to be ever more accommodative, to try to do something about very disturbing unemployment rates is, it is going to
have costs to bear down the road. it is taking some risks that i think we need to be cognizant of and risks will come later and i think, we have to be very wary of those. >> for example? >> the big example for me on buying assets is the size of our balance sheet and how the size of the balance sheet will affect our ability to unwind from all of this wherever that time may come when we have to do that? will we find ourselves behind the curve? will we be able to sell assets rapidly? we're in a world where we've never been before and so i think taking risks about the, about what will happen at end of this is well worth taking heart about. >> you're also concerned about potentially sewing the seeds for higher inflation down the road in this current money policy? >> one of the risks is higher inflation. if we get a situation where we have to tighten policy that some day will come to pass, some may say sooner
rather than later but whatever, when it comes to time to do that will we fall behind the curve and find ourselves in situation where inflation gets too far ahead of us and we lose anchored expectations we rely so heavily on? >> expectations are anchored until they're not. and so this could lead, i'm not forecasting it will do that but i think there's a risk we have to understand that we are taking. >> so then what is the proper policy prescription going forward for you to help get the economy increased economic growth and increased job creation? >> well i think there are a couple of dimensions to that question. one question is, can monetary policy do something about the state we're in? so i think you have to ask ourself, why are we growing slowly? what are the nature of the shocks and what is holding the economy back if you will? and then ask yourself the question, given that what are the appropriate policy tools that we might have? i happen to think, a lot
what is holding economy back is uncertainty about the election, about the fiscal cliff, about europe. about growth in the economy. and that further monetary policy action at this point is not going ameliorate much of that uncertainty. and so here i would coins set at the -- counseled at the last meeting for patience. we need to get you there the fall and drought and uncertainties and election and fiscal policy decisions we have to address and see if that doesn't take some of the shackles off the economy if you will. >> you would also favor tightening sooner rather than later. right now the guidance as fomc does not plan to tighten before mid 2015. >> right. >> you would favor? >> i certainly anticipate that yes, we'll have to tighten before then, particularly if my view of the economy and what's holding it back turns out to be accurate. that if it really is about uncertainty, about fiscal policies and elections in europe and worldwide growth,
then if those ameliorate, we're going to have more growth going forward, not a lot but more growth and we will find ourselves having to tighten sooner. >> but you don't feel then, you don't agree with some who cite in some empirical evidence showing that, quantitative easing has helped to lower interest rates, reasonably substantially, and thus helped to create you know, extra growth in gdp? >> right. >> we heard two million additional jobs from a friend of yours recently. >> there is a lot of empirical work that's been done on the effects of quantitative easing and asset purchases but those, studies are take actions were done at very different times. you had qe1 which came at the height of the financial crisis where markets were dysfunctional, where liquidity was scarce, where trading wasn't taking place. and to compare the effects
of a qe action in '08 and '09 with what happens today, when in fact markets are not dysfunctional, there is not a liquidity problem, you can't apply the findings from qe1 and think we'll get the same effects on interest rates today that we did in 2009, or in qe2 when we were trying to deal with a deflationary fears. i think the environment's different. so we just can't take all that evidence and apply it blindly. i think it has diminishing returns. and frankly while we have some evidence that interest rates decline we don't know they were permanent. people argue it was transitory and we don't really directly observe the impact on employment and output. >> we did see some economic indicators today, i was talking to you before we came on camera because during the your speech we got the release of consumer confidence was up substantially in the month of september, in part on people feeling better about their job prospects. about higher stock prices.
you know, the so-called wealth effect would help make people feel wealthier, invest, they would spend more. what do you make of that, and -- >> well, i mean, if consumer confidence went up, i think generally that's a good thing. that is usually a good indicator of things to come but, you know, i think we have to be careful about reading too much into the entrails here what sort of actually caused it or not. i do think we have to be careful, i am not a big fan of talking about monetary policy and wealth effects. that is not something i find very useful because i worry particularly about the public coming to belief somehow the target goal of monetary policy is to have the stock market reach a certain level and go up or go down. this is very dangerous place for monetary policy to be. what we ought to focus is on our ability if we can to make the economy work more efficiently and improve welfare more generally by raising growth and or reducing unemmoment. >> charles plosser, thanks
for joining us during the live portion of our broadcast here on fox business. melissa and lori. we'll go over to the website, foxbusiness.com. we'll continue our discussion with a little bit of a breaker who. give people time to click over. we'll drill down some more on president plosser's thoughts about the current state of the economy and, if i mentioned that taylor rule in that part, click away. so we won't. lori: i don't know. i'm a nerd i love the taylor rule. >> peter barnes, thank you so much. >> oh. melissa: see? lori: bye-bye. that was it for that window. melissa: i guess. lori: thank you, peter. great interview. time to bring home the bacon. hog prices have fallen more than any other commodity since july. as supplies dwindle, analysts expect a major rebound in prices, up to 39% in 12 months. sandra smith has details in today's trade. >> hey lori and hey, melissa. i want the camera focus in
on the trading pit. you don't get this look very often. we're in last six minutes of trading on lean hogs. everything happening in that trading pit right now affects pricing at mcdonald's and hardee's. what you buy in the grocery store, all these things happen. you used to be in the trading pit but. what is happening in market so exciting right now? >> markets are in recovery effort from the so-called avalanche of pork. spot prices down 40 to 50%. production is up 40%. right now we're still focused on the longer term big picture here. >> let's walk this way. this is exciting. we're seeing the pits light up right now as we speak. what is happening with these prices? what will this mean for the consumer what we purchase at a grocery store every day? what is happening with fastfood chains? these pork producers are facing skyrocketing prices. >> no doubt about it and we're concerned that producers will continue to liquidate their herds. this could restrict supply
of pork in the next year. we're expecting near term relief as they liquidate their herd. >> which is happening today. >> which is happening today. could mean shorter supply and higher grocery bills. >> that is look you don't get very often. the meat pit at the cme group in chicago. lori: the only meat pit i know is at at grocery store. melissa: we just heard, go ahead. lori: i was going to sum up our inture view with federal reserve bank president charles plosser, interview by peter barnes. a lot of news broken from that. pick it up from here. melissa: efforts to be more accommodative is risky is one of the things he said that was really interesting. also he would have counseled for more patience which is interesting. we know he is definitely a hawk. we'll have to tighten before 2015 and also need to focus on the economy improving by raising growth. lori: what i want to know what he thinks the event should be to close what right now is open-ended quantitative easing. is it a level of unemployment?
what is it? i was it pace of economic growth? tune in to peter's ongoing interview on the web. meantime the race for the white house taking a international turn. focus shift shifting from the economy to foreign affairs. our tax dollars at stake. ashley webster and tracy byrnes have that and a whole lot more. keep it right here on fox business now we need a little bit more... a little bit more vanilla? this is great! [ male announcer ] at humana, we believe there's never been a better time to share your passions... because the results... are you having fun doing this? yeah. that's a very nice cake! [ male announcer ] well, you can't beat them. [ giggles ] ohh! you got something huh? whoa... [ male announcer ] humana understands the value of spending time together that's a lot of work getting that one in! let's go see the birdies. [ male announcer ] one on one, sharing what you know. let's do it grandpa. that's why humana agents will sit down with you, to listen and understand what's important to you. it's how we help you choose
ashley: good afternoon, everybody. i'm ashley webster. tracy: i'm tracy byrnes. stocks near session lows as we enter the last two hours of trading, down about 16 points. it had been up, to 60 points at the highs of the session. ashley: american banks, utilities and the government are under constant assault by hackers. a head of cybersecurity firm source fire, martin roesch will have the very latest where these attacks are coming from. tracy: scary stuff. american home prices rising last year not second straight month. david blitzer who oversees
the case-shiller report, will tell us why he is optimistic about housing. ashley: good to here. time for stocks. as we do every 15 minutes, let's head down to nicole petallides on the floor of the nyse. down 20 points, nicole. >> that's right, ashley and tracy. as you noted we had a winning day on wall street. the dow was as high as 1,620, only to give a lot of that back. we're down almost 100 points from that level. we had the back and forth action. the dow is down 23 points. nasdaq composite one quarter of 1%% and s&p 500, much of the same. we want to look at caterpillar, the number one loser on the dow jones industrial average. obviously a global heavyweight but like so many of these big names having to cut their full-year outlook. in this case, cutting their outlooks and estimates into 2015 because of an anemic economy, growth that obviously has stalled. as a result they're having to cut their profit outlook. they think they still will be profitable even if there was recession they still
would be but having to cut the numbers. that's why you're seeing the stock down. back to you. ashley: nicole, thank you very much. tracy: all right. food, beer and drugs, ashley had them for lunch. ashley: saturday night. tracy: three things people can get addicted to. i would add cigarette, sex clubs an wine to that list but nevertheless according to our guest, three smart places to invest your money, the former not the latter. joining us to explain why, john burke, ceo of burke financial stratis about. what i love to this, this is back to old style peter lynch investing, invest in what you know. ashley: sin stocks. >> tracy, we're --. ashley: what the heck have i got myself into. tracy: because i knows i will ask about rick's cabaret. >> i can't help you there. we're getting a little concerned about the market because a year ago we had all these issues about the european economy and the american economy and of course emerging markets.
fast forward today we're up 27%. all day we have the promise of good things to come. we're starting to get a little concerned especially with that fiscal cliff looming. ashley: is that the biggest threat? you mentioned d.c. continues to be polarized. as you mentioned the eurozone or global markets and emerging markets continuing to fade. it was same story as year ago as is now as you pointed out but what is the biggest threat? >> we think the biggest threat is the fiscal cliff. we have ceos out there delaying hiring decisions because if that fiscal cliff does hit all at the same time we'll for sure get a pullback in the economy next year. who wants to add people just to lay them off a few months later? tracy: to your point, regardless what's happening if you're a smoker you're buying cigarettes. if you drink beer you will not stop because your paycheck potentially got smaller. so, uric s are basically picked around that, right? stuff we do regardless what our paycheck looks like? ashley: addictive?
>> i had a well to do doctor client say, please construct a portfolio for me. i want all the things people will be addicted to because i know they won't give them up. ashley: that's smart. what particular play do you like, talk about tobacco? what do you do you like in tobacco? >> tobacco for us is a little stretched. philip morris is name we like. it was up 40% last year and it is up this year. it is a little stretched out. we're looking for better valuation, yum! brands, parent company to kfc. yum! brands sup five times its price from when spun off from pepsi in the late '90s. during that time they opened up average of 400 stores a year in the emerging markets. now they're up to rate that will be up to 800 to 900 stores a year. we still think there is lot of room to go for yum! brands. tracy: kentucky fried chicken, peas a is a hut, taco bell under yum! brands. astrazeneca, you get addicted to that stuff too,
huh. >> eat pizza from pizza hut and yum! brands and beer from sabmiller and you will need nexium. i suggest take a nexium so your stomach will feel better. they make nexium, and 4.1% dividend. if there is trouble we're getting paid to wait. ashley: sabmiller, you like that in the beer category? >> sabmiller makes 200 different beers and sell them in 75 different countries. this is another wonderful emerging market story. beer sales tend not to go down. if anything they go up during tough times. we feel safe. tracy: they distribute coca-cola too. i guess all around it is pretty safe bet. john burke, thanks for being with us. >> thanks for having me. >> like that peter lynch style. if you start to go through and think about the stuff we use every day and i did that, most of the stocks are doing well. rick's is not on my list by the way. ashley: glad to hear it. tracy: china's foxconn
factory reopened a day after the large brawl broke out among company employees and forced the facility to shutdown of the the company described the incident as close a personal dispute between several employees. that escalated to thousands of people. foxconn employs 79,000 workers at the facility which produces parts for apple, intel, microsoft and cisco among others. i don't know what the personal dispute was. the incident which has drawn attention as photos and videos make their way around the internet high light tensions between workers and management. foxconn is considered a touchstone of these concerns. spout of suicides of employees and major concerns over dozens of labor rights violations in the past. we talked about that before. ashley: 79,000 workers in dormitory. if you have a dispute i see how it could get out of hand. tracy: could be over anything. could be over a woman. ashley: well, there you go. wouldn't be surprised. all right, coming up
regulation nation. are new regulations really needed to keep crush trucks from crashing into overpasss? believe it or not, yes. liz macdonald is on the story. tracy: home prices are up again. is there reason to be hopeful about housing prices? david blitzer weighs in ahead. as we do every day at this time, see how oil is trading. $91.43. copd makes it hard to breathe,
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ashley: guess what? election talk shifted from the economy to foreign affairs with president obama speaking at the united nations general assembly this morning. rich edson has been following the story and joins us with more. >> ashley, international events keep working that way into the public discourse. governor romney says president obama has failed to lead the region into a more secure future the president told the united nations that the administration can only go responsibly so far to influence and encourage fledgling democracies. >> just as we can not solve every problem in the world the united states has not and will not seek to dick kate the outcome of democratic transitions abroad. >> speaking at clinton global initiative republican challenger mitt romney said
the obama administration is loading control in the middle east. >> a lot of americans, including myself, are developed, excuse me, troubled by developments in the middle east. we somehow feel we're at the mercy of events rather than shaping events. >> there are international disagreements focused on trade with china, with romney charging the administration is soft on chinese trade and currency violationlations. the admin -- administration points out it charged levees on products from china and encourages acting on currency which they say is slowing happening. ashley: rich edson, thanks so much. tracy: should the federal government regulate bad driving? i would never be allowed on the road. it is a serious question that senator chuck schumer called for new federal rules for satellite based gps systems to stop trucks from crashing into overpasses. ashley: honestly? tracy: honestly?
liz macdonald here with the story. >> here is what is going on. the senator is saying there is spike of number of truck crashes where trucks are plowing into bridges and overpasses, nearly 900 over the past decade. 200 crash as year in new york state alone. eight out of 10 the senator said due to truckers using consumer style gps systems. things like google maps to wrongfully end up on parkways. hear is the senator yesterday talking about the issue. >> often times they say the gps directed me on it. many truckers may not know that the gps has no, right now is, it is programmed to be the same for a five foot high ford taurus or 15-foot high tractor-trailer. the onus should be on dot to make sure the trucking industry does. >> here is what the senator is asking the department of transportation to do. not only basically issue new rules, he wants the dot to investigate this matter and issue recommended federal
standards to address the problem. essentially the senator wants the federal government to issue national standards for gps systems to basically accommodate truckers and put a warning civil in the gps systems to accommodate truckers. he is basically asking the industry to fix what the truckers should be fixing. ashley: what did they do before gps? >> basically didn't show up --. tracy: get a map and figure it out. >> looked at a map and figure it out. they say they're using gps systems wrongfully funneling them toward the park ways. it is up to the truckers and ticket them. why not just ticket them to stop? ashley: these are the same truckers follow gps blindly and follow it into the lake. tracy: stop looking at hawaii girl on the dashboard and pay attention. >> senator says taxpayers are footing bill for bridges smashed into. tracy: fine. maybe someone should tell the senator we have a fiscal cliff. move on. >> maybe have the trucking
industry. ashley: every time they crash blame the gps. tracy: that's what i do. ashley: thanks, liz. tracy: my gps's fault. ashley: everything is gps. as we do every 15 minutes, let's check the markets. nicole petallides on the floor of the stock exchange. smooth sailing for a major cruise line. >> that's right. we'll take a close look at carnal -- carnival cruise line who hit a 52-week high. they did change the range of full year numbers and their expectations. they did beat the street. they have revenue per cabin which improved. they said they see prices going back to more normal levels back inside 2013. as a result you see the stock here up 1.5%. certainly a good move there. year-to-date it is up over 17% and it did as i noted a new 52-week high today. on a day where the market has given up most of the gains. the dow is down 19 points.
ashley: all right. nicole, thank you very much. we'll check back with you in 15 minutes. tracy: wonder if they use gpss? ashley: i hope not based on what we've seen. tracy: coming up the case-shiller report on rising house prices boosting hopes for a housing recovery. david blitzer will show us where housing is showing the most strength. ashley: first, let's take a look how the dollar is moving right now on a day the dow is drifting slightly lower. these currencies, they're up against the dollar. the euro is up. the u.k. pound is up at 1.62. we'll be right back. ♪ [ male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together
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>> at 20 minutes past the hour i'm jude yell huddy with your fox news minute. several bombs went off inside a school in damascus reportedly used by regime forces as security headquarters. one activist said government forces used the school to fire mortars at rebellious neighborhoods. early reports say seven people were injured in the attack. supreme court says law enforcement officers need a warrant before otherering a blood test for a drunk driving suspect. they agreed to take up a case involving a disputed blood test in missouri. one small touch for the
mars rover. reached out touched a mars rock for the first tile. also hit the pyramid shaped stone with a laser in order to an lies contents. the rover will travel to sandy area next, to try a little scooping civil. those are the headlines. that is all i have to say, ashley and tracy. ashley: a rock and blew it to pieces. got to like that. >> smithereens. ashley: we come in peace. thank you, juliet. appreciate it. tracy: that must have costs millions and millions of dollars that little scooping civil. she is great. home prices rose in july for the fourth straight month according to the s&p case-shiller home price index to hit their highest level in nearly two years. joining us with more on the report, david blitzer the chairman of the index committee at s&p dow jones indices. thanks for being with us today. i think overall everyone is getting more optimistic about the housing market, right? >> absolutely. this report looks good. it comes in behind a couple
of other reports that looked good and we're seeing a lot of confirming evidence in housing starts, housing permits. existing home sales. really across the board, the whole housing sector is looking much, much better. tracy: the index still only looks at 20 cities, right? tons of other cities an towns in this country that are suffering. so how do we extrapolate based on your index how the overall country is doing? >> well, i think two ways it is only 20 cities but it is a pretty good cross-section of the whole country. we have representation in the sunbelt, and upper midwest which is suffering, had suffered from a lot of industrial problems in the rocky mountain states and on both coasts. so we have a good mix. second of all on a quarterly basis but not this month we run annual, excuse me, a national index that covers pieces across the country. and that also is showing some very good numbers. and, that plus all the other
data, other price indices as well, has a, is painting a very strong picture. tracy: we still have cities seeing price declines, new york being one of them. although new york was a little late to the party, wasn't it? it was doing really well while other towns and cities were not? >> new york was a little late to the party that way and, i think it will gradually come back. one thing to point out about new york. this is not the apartments you see written up in the newspaper every weekend for tens and 20s, and millions of dollars. this is regular homes bought by regular people throughout the new york metro area. tracy: is that what we're seeing, more single family homes, more people sitting down doing the should i rent and should i buy calculation? it is coming up that buying is clearly cheaper? >> it is coming up that buying is cheaper. existing home sales which were reported a few days ago by the realtors showed strong numbers at around 4.8 million, which is pretty close to a normal number. the one issue a lot of
people are having, is there aren't that many houses listed for sale. the realtors reported very low inventory, even though they are seeing sales go up. apparently the group of people, haven't been convinced housing is back for real. tracy: yeah. >> the ones waiting to sell their homes. tracy: i mean that's it, right? i love to sell my home but i'm afraid i will get low-balled for it. the other problem, we come back to the loan market. there is no real incentive for a bank to make a loan. why would anybody want to loan me money for 30 years at 3.5%? >> well, i won't say anything about you in particular but the banker's problem, the banker's problem is less the 30 years because, just like they did four or five years ago, they will turn around and sell that loan in 48 to 72 hours and take the money and lend it out again. the bank's problem is they got burned five years ago and they haven't forgotten it yet. tracy: right. >> and like a lot of us,
bankers or otherwise, we're very good at remembering the last mistake and doing our best not to do it. so having make sure we avoid the last mistake we're not making a lot of loans that we could be making rolling it over, selling it and actually profiting. tracy: yeah. i guess that will be eventually when the market turns, when the banks aren't so scared anymore. david blitzer, s&p, dow jones indices. thank you, sir for being with us. ashley: all right. got to get the banks to lend otherwise you can't get mortgages. how about this for big money buyers shelling out millions more than expected for art and trinkets owned by the late philanthropist brooke as store. the auction took in $8.7 million in the first day. that is about what the entire collection was expected to fetch two days. biggest seller so far, a painting by john frederick lewis sold for $1.5 million.
that is the three times the entire estimate. the entire collection includes 900 pieces from brooke as store's homes including 100 paintings of dogs. i wonder if they're playing cards. the proceeds will go to as store's favorite causes including the new york library. she died five years ago at the age of 105. that is good life. tracy: third husband. 105. she did it all. god love her. and i bet you it is a --, paying $200 million to customers charged for card services they actually thought were free. gerri willis is on that story next. ashley: take a look at some of today's winners and losers with the dow drifting even lower, down 37 points. safeway, not bad, up 3 1/2%. we'll be right back. [ engine revving ]
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i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. it with criticism even from the philadelphia fed. of vocal critics that down for an exclusive interview with peter barnes. iran denies it was behind the attacks on bank of america and j. p. morgan. who was to blame and how vulnerable and security breaches. we could be heading for global banking shortage. you have the skinny on how to
make money off of pigs. connell: 5 let's get a check of the markets. nicole petallides on the floor of the nyse. nicole: shortage of bacon and better than that. they are higher. what is the big picture? >> we opened in the home. we got a little bit of a boost in the market. and a lot of people talk about the fact that it could be signaling to was the lack of demand is coming and it will be back. nicole: we heard about the fact that it could dampen run things. i wanted to talk about the fact
that back-and-forth action, is that a positive sign? >> it will be hard to judge unless we get some really unusual numbers with initial jobless claims and things like that. it is excessively slow volume, people looking at the bigger picture and saying it might be a good way to deal with the process. >> we appreciate it. [talking over each other] >> every monday of my life i am on a diet. ashley: bacon and cooking and it is so good. [talking over each other] tracy: cracking down on banks for deceptive practices. the first to feel the wrath and millions in fines for allegedly
misleading customers to buy an add-on products. gerri willis joins us with more. we talked about this before. gerri: my entire body is in the habit of an 80-year-old man. [talking over each other] gerri: worried about credit protection. people bought a product they didn't need and getting their money back. discovery has been fine. back to consumers and you know how this works. outside groups, picked up the telephone and discover clients and offered them a service to protect you. and that the end of the day, as much money just saving that fee in case of a rainy day so a lot of consumer advocates hate these services because they don't do a lot. ashley: identity theft and those
kinds of things are other issues they thought was part of the service and what was the fee? coming directly from their bank account. gerri: without their knowledge. another big problem. tracy: how do i know if i am eligible? for money back? gerri: great question. [talking over each other] gerri: you can call the regulators. gerri: get your money back. wasn't worth it. gerri willis tonight at 6:00 and 9:00 eastern with the old man right here on the fox business network. hanging in there. ashley: call in charlie. gerri willis and charlie will be along. sale of the i phone 5 missed estimates. we know that. but apple topping expectations. apples that up 40% in the big apple since last year and outpacing the 4% spike in overall crime.
new york city police say 11,000 of the crimes in the city involved the theft of an apple product. that is one of every seven crimes. the nypd station officers at 27 stores where the i phone 5 went on sale friday to help owners register their phones to track down if it gets stolen. according to police iphones of the most commonly stolen item. apple trading at $6.85 off of that 700 plus high hit earlier but down $5.66. tracy: when i first got out of graduate school, my mother would be like you should take your money to your desk because they robbed you and everything got better and i feel so safe in this city and that is what happened. we are lackadaisical. i walked into the garden. ashley: a lot of people walk on
with their hand and you see a lot of people swinging by. tracy: part of me thinks it is a credit to what they have done because so many of us are carefree about it. very comfortable. ashley: that is what we're doing. tracy: philadelphia fed presidents making it very clear he is no fan of q e 3. peter barnes has more in his exclusive interview with the inflation hawk next. ashley: let's look at the 10 and 30 year treasury. ten year down 2 basis points at 1.69%. we will be right back.
you know ronny, folks who save hundreds of dollars by switching to geico sure are happy. and how happy are they jimmy? happier than eddie money running a travel agency. get happy. get geico. fifteen minutes could save you fifteen percent or more. >> consumer confidence jumped to a 7 month high in september. the index rose to 70.3. highest reading since february. consumer confidence closely watched indicator since consumer spending accounts for 70% of u.s. economic activity. toys r us putting out the help wanted sign for the upcoming holiday season. for the toy store chain hiring 40,000 people for its pop stores and 13% increase from the number of seasonal workers as high as last year. the frock shares jumping after the company said its leap pad ii was selected as one of walmart's
>> oil closing down $0.56 at $91 and 3/$0.07 a barrel. ashley: federal -- federal reserve president opposes the fed's latest round calling the move whiskey. peter barnes joins us with more. an exclusive interview. >> very meaty speech on the part of the philadelphia fed president, who laid out what he
thought were the risks to quantitative easing and accommodation by the fomc. would have voted against it in part of the risks, and inflation or cash into the system or the risk of how to unwind from trillions of dollars. he is not sure quantitative easing would be as effective as perhaps the first or second round of q e work. take a listen. >> compare the effects of q e action in 2008-2009 with what happens today when markets aren't dysfunctional there is not a liquidity problem. you can't apply findings from q e 1 and think we will have the same effect on interest rates today that we did in 2009 or in q e 2 when dealing with deflationary harry fears. the environment is different. we can't take all of that and
apply it blindly. >> he says the big problem was flat out uncertainty about the fiscal cliff in washington and the debt crisis in europe and he is hoping there would be clarity for businesses and consumers and investors once we get past the election and that will help increase economic growth in 2013. ashley: he makes the point it won't improve given huge boosts to the economy or going to create hiring but q e 3 does perhaps bring into question the credibility of the fed. did he expand on that? >> they talked about that in his speech because it is important the fed maintain credibility as an inflation fighter. that the fed has spent 20 years building its reputation as to fight high inflation and all of this q e and policy
accommodation may damage that and people won't trusts the fed when it makes policy pronouncements and policy in the future and won't be as effective. ashley: appreciate it. tracy: is the sec backing away from indecency complaints? schering back its enforcement of indecency charges after a series of courts slated down. dennis kneale covering the story. does this mean we have more tolerance? dennis: the sec has set a retreat in a faltering work done in decency. doubt in congress and the court that was wide or constitutional. the sec saying it will stop pursuing 1.5 million indecency complaints and focus only on the worst. the agency backing down after the justice department dropped a lawsuit against fox broadcasting. a blurry pixilated peak of
nudity on a reality show almost a decade ago. a decade since cracking down on four major broadcast as basic cable got racier. like fox's fedex channel. long on profanity and fleeting flashy images that sec regulations only the big four broadcasters and local stations. sometimes too ridiculous degree. they have investigated a complaint filed against the cartoon series the simpsons fora seen in a strip club. the decade long war began with the wardrobe malfunction at the superbowl in 2004 and a janet jackson flap -- get it? they let that stand in june and throughout the penalties against fox and abc for offenses almost a decade old. f words uttered by share and nicole richie and the bear derriere on nypd blue.
now they're standing down. i can't wait to see how egregious the next complaint will be that they prosecute. ashley: cartoon nudity makes me nervous. for tracy: nypd blue bear but was the first-ever. >> the actress [talking over each other] [talking over each other] ashley: it is a quarter till. time for stocks and as we do every 15 minutes we head to nicole petallides on the floor of the stock exchange. >> look at electric cars, the california-based company, they cut their revenue outlook. they are not getting that model of fast enough.
the increased production and that has not accelerated as quickly as they hoped. also issues, the all aluminum body we are talking about and they did get a nice loan from the department of energy and had to amend the loans they had done to keep the company's -- enough money to pay back the principal. they carmen the energy had $465 million available to them and they had three sixty million and issuing new shares. ashley: thank you. appreciate it. [talking over each other] >> denial of services a cover-up for more serious breaches. the head of cybersecurity ways in next. ashley: take a look at today's winners and losers with the dow drifting lower by 30 points.
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quite an active session. we are in the green room. and those grain prices and corn and soybeans. says are the input costs of feeding those animals and the reason prices down and hogs have been the worst performing commodity since june is the fact that ranchers and hog producers have not seen them so there is abundant supply going under the market since 2009 but that is not expected to last very long with all those animals coming to production. won't be much and the chicago tribune featuring an article saying worldwide bacon shortage is coming and it is those grain prices. 20 years ago corn prices weren't $2 of social and not facing $7.50 which makes it very hard to maintain those.
another stock play including smithfield, they are soaring and have to pass goes to the consumers. there has been some concern in pricing those stocks and don't forget fast-food chains which are paying higher prices as well so a lot of traders we talk to say take warning a few own mcdonald's shares or jack in the box or dunkin donuts and even yum brands. these are some names that will face higher prices and in the meet its earlier today, bacon prices coming next summer still lot of companies have to prepare for that. the average analyst estimate goes up 39% over the next 12 months. that will affect all of us. tracy: thank you very much think. [talking over each other] ashley: let's move on to
something else. j. p. morgan suffering dial of service attacks last week. last year white house report recorded 43,000 cybersecurity incidents. joining me with more on how secure companies and government websites are founder and chief technology officer of cybersecurity solution firm source fire. you look at these numbers and it seems we are at war. >> it can feel like that many days. we see the attacks coming in and exploit happening and sometimes people call the cybersecurity world an arms race and you see kind of a siege mind set and a lot of places. charles: in the case of bank of america and j. p. morgan have we concluded or confirmed this leads back to iran? >> a lot of speculation.
this is actually very difficult so people who claimed responsibility claim to be from iran. is a good leading indicator that is where it is from the it is easy to fake your identity and your origins on the internet. i would caution people to be a little bit introspective about thinking where these attacks are coming from but right now it seems they could be originating from iran. ashley: every second of the day there is a cyberattacks especially with government websites or companies. what are these hackers able to do? worst-case scenario could they trigger the launch of a nuclear weapon? >> that is a little far-fetched. getting access to nuclear control capabilities and the codes required to launch them is something still in the science-fiction realm. there have been breachedes of military systems before but we have not seen our government
lose control of the weapons in networks today so far. ashley: so many of us do our banking and financial business online and we take for granted. we put in passwords and change our pass words but how easy is it for these people to get into bank websites and take our money? >> at has been an area where there's focus on the part of the banks. they don't want unauthorized people taking the money so they have these new systems, use to help people keep bank account secure. definitely does happen. we see the introduction of pieces of software that watch you log in and if they get your credentials it could be very bad for making your money saved standpoint. ashley: and engine here and. what poses the biggest threat?
which country or group of hackers where are they and what could they do to us? >> there are a lot of groups of hackers out there today and we are seeing the industrialization of hacking happening right now. they are from all over the world whether eastern europe or asia or western europe there are groups all over the world to specialize in doing this stuff all day every day and people have to realize that that is the case and have to take it seriously and emerging from awareness happening now. ashley: very sobering words. thank you. appreciate your time. [talking over each other] tracy: scary stuff. don't go anywhere. the dow has fallen 36 points. liz claman will take us through the last hour of trading. count down to the closing bell is next. [ male announcer ] at scottrade, we believe the more you know, the better you trade.
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